The price target implied a potential upside of 30 percent, which the stock has manage to achieve in a single session.
Mankind Pharma listed on the bourses at a premium of 20 percent to its issue price of Rs 1,080.
Macquarie said that Mankind Pharma appears to be well positioned to double its profit after tax (PAT) by the financial year 2025-26.
It believes that the company's sales outperformance in the Indian market, focus on chronic therapies and improved salesforce productivity would be the key growth drivers.
Moreover, the pharma company's core strategy-- affordability, accessibility, and quality chronic focus, would drive meaningful growth and margin expansion.
The company has a net cash of Rs 280 crore as of December 2022 with strong cash flow generation.
However, the brokerage house believes there are certain risks if the company fails to gain market share in the chronic segment, coupled with regulatory changes in the Indian pharma market and further stake sales by private equity investors.
The public issue of Mankind Pharma, which opened for subscription on April 25 and closed on April 27, got a good response with an overall subscription of 15.32 times.
The Rs 4,326-crore IPO of Mankind Pharma is one of the largest public issues so far this year and one of the biggest ever by a domestic drug maker since Gland Pharma came up with its Rs 6,480 crore public issue last year.
Shares of Mankind Pharma are currently trading 31 percent higher at Rs 1,412.45.